Fresh bid made for Slingshot owner at lower offer price

Tuesday, 11 June 2019

The Australian-owner of New Zealand's third-largest broadband provider, Slingshot and Orcon owner Vocus, has a new suitor.

That is just a week after a proposed A$3.3 billion (NZ$3.5b) takeover bid from Swedish private equity company EQT Infrastructure fell through.

EQT withdrew its conditional offer to buy Vocus at a price of A$5.25 a share last week, after doing due diligence on the firm.

But Vocus announced on Tuesday that Australian energy company AGL Energy had now come forward with an indicative bid at the lower price of A$4.85 a share, which would value Vocus at just over A$3b (NZ$3.2b).  

Like EQT's scuppered bid, AGL's offer is dependent on due diligence and the unanimous approval of Vocus' board.

**READ MORE:

* Australian owner of Slingshot and Orcon receives $3.5 billion takeover offer

* Spark boss Simon Moutter downplays prospect of Vocus NZ acquisition**

Vocus chief executive Kevin Russell said Vocus was focused on executing a 'turnaround strategy' and delivering on the opportunity in front of the firm.

But it has granted AGL an exclusive right to do due diligence so it could potentially put together a 'formal binding proposal'. 

The Commerce Commission estimated Vocus NZ had about a 13 per cent of the New Zealand fixed-line broadband market, by connections, last year.

Vocus attempted to sell its New Zealand business last year, but canned that plan after offers did not meet expectations.